African Governments advised to follow Kenya Airways model
African governments are being advised by airline officials to stop running airlines and follow Kenya airlines model maintaining some ownership whilst leaving the operations of the business to private operators who are experts in the area.
At an investors' breakfast briefing in Nairobi last week, Chief Executive Officer of one of the leading African airlines, Kenya Airways, Titus Naikuni, said that African governments should stop trying to run airlines and leave the operations to the experts.
"My advice to Tanzania and other African countries is that if they want to have profitable national carriers they should move the airline business from the governments. A government can still have some ownership but let the people who know how to run an airline do it," Naikuni said.
The Kenya government has a 23 percent stake in Kenya Airways but the government is not involved in the running or operations of the airline. The KLM group have a 26 percent stake in the airline but the majority of the shares (61 percent) are owned by public investors across Kenya and Africa.
Kenya Airways provide numerous holidays in Africa to travellers from all over the world. The airline operates flights to Nairobi, Dar es Salaam, Rwanda, Johannesburg, the Seychelles, Ghana, Liberia, Egypt, Sudan, Muscat, Dubai, Honk Kong, Bangkok, Paris, Amsterdam and London.
The recent statement came in light of the struggles of the Air Tanzania Company Limited (ATCL) who are struggling after an unsuccessful partnership with South African Airways. The government have since taken over the operations but things have worsened considerably. The government are looking for private investors but experts have advised them to liquidate the company and start again.
Naikuni has ruled out any possibility of a relationship with the struggling ATCL, despite previously tried efforts. He explained:
"We already have a good relationship with Precision Air through a 49 per cent ownership. Why should we need the second airline in Tanzania? Why don't we look at a relationship between ATCL and Precision Air, for example?"
However, despite this statement, Precision Air said that the airline is not looking to buy any shares in ATCL at present but is open to discussions. Managing Director of Precision Air, Alfonse Kioko, said:
"We tried in the past to acquire some stake in the ATCL when the government was looking for an investor but the response was not positive. So we gave up. We are, however, open to any kind of relationship, not necessarily through buying shares," he said.
Talk to a specialist
Call 020 7644 1770 to speak with our award-winning travel consultants.
Opening hours 10:30 - 18:30 GMT
Popular Holidays Browse all
Spend wonderful days exploring India's landmarks with a wealth of spectacular sights to see
- Private escorted tour upgrade from £99pp
- Indulge in a Rajasthani Feast in Jaipur
- Explore the legendary Taj Mahal
Whether it's gliding down waterslides, riding a pirate ship, or just relaxing on a lazy river at Pirate's Paradise Waterpark, fun is guaranteed for everyone!
- Surrounded by Montego Bay Marine Park
- Unlimited-Fun® All Inclusive resort
- On-site waterpark with a pirate ship
Ideal for trendy couples - stay at a chic and sleek hotel in the heart of vibrant Havana and then move on the shores of Cuba's most famous beach
- Get the honeymoon package with late check out, turn down service, special room upgrade and other services
- Full range of spa treatments for a more relaxing break at Blau Varadero, or a selection of water and land sports to choose from for the more active traveller
- Be swept away by the amazing panoramic views of Havana from the NH Capri's rooftop swimming pool
Use up to $2500 resort credit to indulge in spa treatments, golf sessions or a selection of excursions that will make your Cancun holiday truly unforgettable
- Kids and Teens Stay Free
- Exclusive Room Upgrade
- Up to $2,500 Resort Credit
Enjoy a holiday filled with sun and sand at Be Live Collection Punta Cana. To give you a teaser, expect plenty of...
Start your Cuban experience at the NH Capri Hotel, one of Havana’s most historically popular mafia-run hotels of the...
The Iberostar Parque Central Hotel is the perfect place to feel Cuba's beating heart and pulsating rhythms, and will...
Experience the height of luxurious comfort at the modern deluxe Pearl Rotana, designed to suit the needs of business,...
Situated right at the heart of the Port Rashid district, the Hilton Garden Inn Dubai Al Mina sits ideally between the...
Located in the city centre business district, the DoubleTree by Hilton Ras Al Khaimah combines stylish accommodation and...